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Intel Cloud Summit: Big Data

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Every two days, we create as much information as we did from the dawn of civilization up until 200333

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Big Data Phenomenon 1.8ZB in 2011 750 Million 966PB 2 Days > the dawn of civilization Photos uploaded to Facebook in Stored in US manufacturing to 2003 2 days (2009) 209 Billion 200+TB 200PB RFID tags sale in 2021: A boy’s 240’000 hours by a MIT Storage of a Smart City project from 12 million in 2011 Media Lab geek in China $800B $300B /year $32+B in personal location data within US healthcare saving from Big Acquisitions by 4 big players 10 years Data since 2010 “Data are becoming the new raw material of business: an economic input almost on a par with capital and labor.” —The Economist, 2010 “Information will be the ‘oil of the 21st century.’” —Gartner, 201044

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Why is Big Data Important? Smart City Project: Up to 50% Decrease Improve Public Safety, in Product Boost Economic Development and Growth Assembly Costs1 Online Retailer Generate Revenue Generated 30% of from Data Analytics of Sales Due to Analytics B2B Sales? Driven Recomendations1 Data is the Raw Material of the Information Age1::McKinsey Global Institute Analysis66 *Other brands and names are the property of their respective owners.

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Intel’s Role in Big Data Accelerating big data analytics through faster and more effective CPU, Storage, I/O, Network platform. Driving innovation in big data applications by providing optimized software stack and services. Foster the growth of big data ecosystem through broad collaboration with partners. Investing in Solution Research and Services for Big DataData of any type, under any provisioning method, is analyzed to find insights that drive business, social, and ecological value.1414

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Summary 1  Big Data is here and growing rapidly 2  Intel is well positioned from a software stack and platform basis 3  Intel is committed to investing in new technology to address more demanding big data requirements of the future1818

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Risk Factors The above statements and any others in this document that refer to plans and expectations for the first quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company’s expectations. Demand could be different from Intels expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intels products; actions taken by Intels competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products. Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. The majority of Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other. Intels results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intels products and the level of revenue and profits. Intel’s results could be affected by the timing of closing of acquisitions and divestitures. Intels results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intels SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended Oct. 1, 2011. Rev. 1/19/122121